LONDON (AFX) - The euro broke through the 0.88 usd barrier and European government bond prices rose sharply on the release of weaker-than-expected second quarter GDP figures from the US. "The euro is drawing strength from the weak figures from the US which show particularly bad news on consumer spending and business investment," Halifax chief economist Adam Chester said. "The bund, like US treasuries, are also higher on the news, peaking at 108 compared with 107.80 immediately beforehand," he said. In the smallest quarterly GDP rise since the first quarter of 1993, the US economy expanded at a 0.7 pct annual rate in the second quarter, lower than the first quarter's 1.3 pct, the Commerce Department said. Most economists were expecting a rise of 0.9 pct. At 1.55 pm, the euro traded at 0.8790 usd, down from its peak of 0.8806, while the bund traded at 107.85.